Reviewing draft fuel efficiency norms, will discuss with members on implementation timeline: SIAM

New Delhi: Auto industry body SIAM on Tuesday said it is reviewing the new draft fuel efficiency norm CAFE III and will discuss with its members on the readiness of all manufacturers to finalise a view on the implementation timeline.

At a press conference, Society of Indian Automobile Manufacturers (SIAM) President Shailesh Chandra declined to comment when asked about incentives proposed for small cars in the new draft of the corporate average fuel efficiency (CAFE-III) norms.

"SIAM never commented on small cars because it was a topic where there were mixed views," said Chandra, who is also the MD and CEO of Tata Motors Passenger Vehicles Ltd.

Differences persist among auto manufacturers on the rules, with small car makers arguing that leniency must be granted to them in the CAFE-III norms on the basis of weight and affordability, even as large OEMs are opposed to differential treatment, saying it would compromise safety features.

While the likes of Maruti Suzuki and Toyota Kirloskar want small cars to be granted benefits, others like Tata Motors, Mahindra, Hyundai and Kia are against it.

Seeking to clear the air around division in the auto industry over incentives to small cars, he said, "There is a revised draft which has come, which we are reviewing it in the next one or two days, we are going to have a meeting with Bureau of Energy Efficiency (BEE) and I hope that this meeting will be constructive on the timeline."

Asked if the industry would be in a position to implement CAFE III norms by April 1 2027 despite the norms not yet finalised, Chandra said, "Right now we are also trying to finalise what is our review on the timeline, and what is the readiness of all the OEMs."

He further said, "Then we (will) take a call when we represent ourselves in the next one or two days, when we are going to have a meeting with BEE. So before that, no comment on what is in the draft or what the position we are going to take."

On Monday, Additional Secretary in the Ministry of Heavy Industries Hanif Qureshi stated that automobile manufacturers will have to comply with stricter fuel efficiency norms from April 1 next year, as the government is unlikely to extend the deadline for CAFE III standards.

Asked for comments on the Delhi EV policy, which has proposed mandating only electric three-wheeler and two-wheelers and banning registrations of new CNG three-wheelers from January 2027 and new petrol two-wheelers from April 2028, Chandra favoured creating a more enabling environment and less of mandates.

"SIAM's view has been that we should create an enabling environment for (EV) adoption," he said.

Elaborating, Chandra said, "What I mean by enabling environment is to take away the barriers towards zero emission technologies, which is coming through incentives, which is overcoming the challenge of charging infrastructure, so that there is a natural pull of a consumer, which comes and less resort to mandates. That is the only view that we would have."